The attacks that left dozens dead in India's financial capital have dealt a fresh blow to the country as an investment destination, but India's size and growth will retain their allure over the long term.

India's shine had already been dulled as foreign portfolio investors fled from risk around the globe, helping send the country's once-soaring stock market down 55% this year. Tight liquidity, a battered currency and a slowing in its once-scorching economic growth add to the gloom.

The attacks on two luxury hotels and other targets were a reminder that risk in India extends beyond the red tape and crumbling infrastructure that investors accepted as a cost of doing business in the world's second-most-populous country.

'In the near term this highlights the risk of investing in markets which have instability of some form or the other,' said Ashish Goyal, Chief Investment Officer at Prudential Asset Management in Singapore.

The Times of India